Orem City Council considers cap on short term rental licenses

The Orem City Council meeting on May 13, 2025, focused on the regulation of short-term rentals, a topic that has generated considerable discussion among council members and the community. The council revisited the proposed cap on short-term rental licenses, initially suggested to be set at approximately 100 licenses based on a formula of three licenses per 1,000 households. However, feedback from previous sessions indicated that this number might be perceived as too low.

During the meeting, council members examined current data on short-term rentals in Orem. According to the 2020 census, there are about 31,295 households in the city, which translates to roughly one short-term rental per 100 households. However, a review of online platforms like Airbnb and VRBO suggests that the actual number of active short-term rental listings could be around 250.

Council members discussed the implications of these figures and the potential need for a numerical cap on short-term rentals. They considered examples from other cities, noting that Provo does not have a numerical cap but restricts short-term rentals in multifamily buildings to 10% of the total units. Sandy City allows two short-term rentals for every 100 single-family homes, while Logan has a cap of two rentals per 1,000 residents.

The conversation also touched on the demand for long-term rentals and the potential displacement of tenants due to short-term rental operations. Council members expressed the need for more comprehensive data to inform their decisions, including the demand for long-term housing and the impact of short-term rentals on the local housing market.

As the council continues to evaluate the short-term rental landscape, they aim to strike a balance that supports property owners while addressing community concerns about housing availability and neighborhood integrity. The next steps will involve gathering additional data and feedback from residents to refine the proposed regulations.